Reality Interactive Inc. Reports Third Quarter Results.MINNEAPOLIS--(BUSINESS WIRE)--Oct. 21, 1996--Reality Interactive Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RINT RINT Radiation Intelligence RINT Recovery Interpreter ), who designs, develops and markets interactive multimedia knowledge solutions for the industrial marketplace, announced today the results of operations for the third quarter ended Sept. 30, 1996. Revenues for the third quarter were $93,677, compared to revenues of $10,928 for the third quarter of 1995. Net loss for the third quarter was $1,639,894, compared to a net loss of $759,169 for the third quarter of 1995. Net loss per share for the third quarter of 1996 was $0.35 compared to a net loss per share of $0.46 for the third quarter of 1995. Weighted average shares for the third quarter increased to 4,677,407 shares compared to 1,643,611 shares for the third quarter of 1995, with the increase primarily reflecting the completion of the Company's Initial Public Offering in April 1996. For the nine month period ended Sept. 30, 1996, revenues were $341,784, compared to revenues of $17,441 in the comparable period of 1995. Net loss for the recent nine month period, before deducting extraordinary losses from an early retirement of debt in May 1996 totaling $219,470, was $4,442,436, resulting in a net loss per weighted average share outstanding of $1.27. This is compared to a net loss of $1,986,381, or $1.21 per weighted average share outstanding for the same period last year. "During the third quarter, we achieved a number of goals that will be important to our future success," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Wendorff, Reality's Chairman and Chief Executive Officer. "We began shipping our new automotive quality product, the QS-9000 Compliance Series. Since the Big 3 automakers are mandating compliance to the QS-9000 Quality Requirements, we believe a number of automotive manufacturers and suppliers will evaluate this product as a solution to achieving compliance." "We also executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. partnering agreements with two leading organizations to assist us with the marketing of our ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 14000 EMS Ems, town, Germany Ems or Bad Ems (bät ĕms), town (1994 pop. 10,130), Rhineland-Palatinate, W Germany, on the Lahn River. Conformance con·for·mance n. Conformity. Noun 1. conformance - correspondence in form or appearance conformity agreement, correspondence - compatibility of observations; "there was no agreement between theory and Series, a product that will help companies comply with the new ISO 14000 environmental management standard. Under the agreements, ANSI (American National Standards Institute, New York, www.ansi.org) A membership organization founded in 1918 that coordinates the development of U.S. voluntary national standards in both the private and public sectors. It is the U.S. member body to ISO and IEC. , the premier U.S. standards organization A standards organization, also sometimes referred to as a standards body, a standards development organization or SDO (depending on what is being referenced), is any entity whose primary activities are developing, coordinating, promulgating, revising, amending, , and GETF GETF Global Environment & Technology Foundation , a leading advocate advocate: see attorney. for sustainable environmental practices, will co-market and co-label the ISO 14000 product. We expect this product will be released during the fourth quarter of this year." "Our international strategy is beginning to take shape as evidenced by an agreement we reached in the third quarter with Futuremedia PLC, a leading UK supplier of interactive multimedia products to the business marketplace. Under the agreement, Futuremedia will be the exclusive UK distributor of Reality Interactive's QS-9000 Compliance Series. Just recently, we signed an additional agreement with Futuremedia to have its German subsidiary, Lasermedia Gmbh, localize lo·cal·ize v. lo·cal·ized, lo·cal·iz·ing, lo·cal·iz·es v.tr. 1. To make local: decentralize and localize political authority. 2. our QS-9000 product into the German language." "Overall, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future of our Company. Although our sales results have been lower than we expected, we believe our basic sales strategy and business model is correct," Wendorff concluded. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, many of which are outside the Company's control and, accordingly, actual results may differ materially. Factors that might cause such a difference include, but are not limited to, those cautionary statements contained in the Company's Form 10-QSB for the quarter ended June June: see month. 30, 1996, unexpected delays in the introduction of new products, lack of market acceptance of new products or new versions of existing products, unexpected additional expenses or operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and the activities of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . -0-
REALITY INTERACTIVE, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1996 1995 1996 1995
Revenues $93,677 $10,928 $341,784 $17,441
Cost of revenues 18,768 1,206 65,238 2,288
Gross profit 74,909 9,722 276,546 15,153
Operating expenses:
Sales and marketing 712,912 238,500 1,859,101 545,113
Research and
development 678,085 175,502 1,598,251 738,627
General and
administrative 428,357 259,347 1,087,109 615,684
Total operating
expenses 1,819,354 673,349 4,544,461 1,899,424
Operating loss (1,744,445) (663,627) (4,267,915) (1,884,271)
Other income (expense):
Interest income
(expense), net 104,551 (95,542) (61,035) (102,110)
Debt offering costs 0 0 (113,486) 0
Total other income
(expense) 104,551 (95,542) (174,521) (102,110)
Income before
extraordinary
loss $(1,639,894) $(759,169) $(4,442,436) $(1,986,381)
Extraordinary loss
from early retirement
of debt 0 0 (219,470) 0
Net loss $(1,639,894) $(759,169) $(4,661,906) $(1,986,381)
Net loss per common
and common
equivalent share $ (.35) $ (.46) $ (1.34) $ (1.21)
Weighted average
common and common
equivalent shares 4,677,407 1,643,611 3,488,130 1,643,611
REALITY INTERACTIVE, INC.
(A Development Stage Company)
BALANCE SHEET
September 30, December 31,
1996 1995
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 271,269 $ 118,916
Short-term investments 6,664,403 0
Accounts receivable 108,117 18,237
Interest receivable 31,649 0
Inventory 89,231 28,359
Prepaid expenses 43,386 8,312
Total current assets 7,208,055 173,824
Fixed assets, net 192,960 269,852
Restricted cash 119,000 119,000
Other assets 29,781 14,116
Total assets $ 7,549,796 $ 576,792
LIABILITIES, MANDATORILY
REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 136,050 $ 188,623
Accrued liabilities 71,720 90,417
Capitalized lease obligation 0 14,127
Notes payable 0 201,002
Other current liabilities 9,710 0
Total current liabilities 217,480 494,169
Long-term liabilities 0 0
Total liabilities 217,480 494,169
Mandatorily redeemable convertible
preferred stock, $.01 par value,
5,000,000 shares authorized; 0 and
726,900 shares outstanding 0 2,125,962
Stockholders' equity (deficit):
Common stock, $.01 par value,
20,000,000 shares authorized;
4,677,407 and 1,643,611 shares
outstanding 46,774 16,436
Additional paid-in capital 15,391,620 1,384,397
Accumulated deficit during
the development stage (8,106,078) (3,444,172)
Total stockholders' equity
(deficit) 7,332,316 (2,043,339)
Total liabilities,
mandatorily redeemable
preferred stock and
stockholders' equity
(deficit) $ 7,549,796 $ 576,792
CONTACT: Reality Interactive Inc. Wes Winnekins, Chief Financial Officer 612/996-6777 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion